A Competitor analysis is an important aspect in the development of a marketing plan. Competitive research is the collection and review of information about a rival business. It is essential to understand your competitors and know the threats they pose to your business
If your source of competitive advantage is cost, and you appeal to a broad scope within the market, then your marketing focus will be on maintaining cost leadership through rigorous operational efficiencies. Whereas, if you have a more unique product in a narrow market, then your opportunities lie in focusing on servicing your target market better than anyone else.